SIE practice questionmediumT-bills, T-notes, T-bonds
Which statement best describes Treasury bills (T-bills)?
- AAre exempt from federal tax
- BPay semiannual interest
- CHave maturities of 10 years or more
- DIssued at a discount and mature at par✓ Correct answer
Explanation
Why D — Issued at a discount and mature at par
T-bills are short-term securities issued at a discount and mature at par value. They do not pay periodic interest, have maturities less than one year, and are exempt from state/local, not federal, tax.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Debt Securities questions
- Treasury Inflation-Protected Securities (TIPS) adjust which component for inflation?
- Which of the following is a primary benefit of investing in municipal bonds?
- Which securities are regulated by the Municipal Securities Rulemaking Board (MSRB)?
- An investor in the 32% federal tax bracket is comparing a municipal bond yielding 3.5% to a corporate bond. What…